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Forex EA Software: Are Robot Users Losing Perspective?

By: David R. Jaymes

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Forex trading technology has progressed by leaps and bounds in recent years. Automated Forex trading Expert Advisors (EA's), also known as Trading Robots, have become so powerful and sophisticated that little or no trading skill is needed to effectively use them to trade Forex.

The advances in Forex trading technology have opened the doors to increasing numbers of Forex traders who would otherwise not have the opportunity to profitably trade Forex. Not only do these new Forex EA software programs practically eliminate the tedious and demanding task of doing Forex technical analysis the more well designed Forex EA software programs offer a 'set it and forget it' method of trading. This 'hands free' approach to trading Forex requires little if any time in front of your computer.

Modern day Forex traders using a well programmed 'Auto pilot' EA's can simply set up their EA at the beginning of the trading week and essentially go about their daily routine and let the Robot trade FOR them.

Many newcomers who don't want to learn how to trade Forex use Forex robots, or EA's to do their Forex trading on autopilot. I see nothing wrong with that... I use Forex trading robots myself and I love them. However without any practical trading experience, Forex robot users are susceptible to loosing perspective and developing unreachable expectations.

If you learned to trade Forex manually, then you know you have to learn and practice because trading currency is a SKILL. Like anything else worth learning, you need guidance and you must practice the SKILL of trading currency until you can execute the trades profitably.

Learning the SKILL of manual Forex trading requires time, and it forces you to develop discipline and nurture the proper 'mindset'. The allure of trying to skip this step completely by using a Forex Expert Advisor that does everything for you is powerful. Having practical knowledge of trading Forex manually gives the trader a deep appreciation for what modern day Robots are able to achieve.
Most Forex traders fail to survive beyond their third month in the market. Gaining Pip's, avoiding and dealing with losses, honing your timing, and developing a 'feel' for the market are key skill sets needed for success in Forex trading. Many times I was grateful to exit a demanding market with a five-dollar gain. The old adage "You'll never go broke earning a profit" really hits home when you manually trade Forex with skin in the game!

The latest generation of Forex trading Robots are completely changing the equation for success. These marvels of modern programming practically serve up your Pip's on a silver platter. The ease and effectiveness of the best designed EA's have both reduced personal effort and raised personal expectations. Some Robot users have developed unrealistic expectations for what; even the best designed EA can deliver.

The bottom line is that a Forex EA can only take what the market is willing to give. It's really a matter of your expectations. Since these users don't know trading Forex can be challenging at first, they expect huge gains every day. In addition, they don't realize that you can only to take what the currency markets give; they don't understand why the Robot isn't trading like crazy every day of the week. Even when the Robot is making consistently profitable trades, they expect even more.

Who wouldn't want to make a fortune overnight? Keep in mind, however, that Forex in general and especially automated EA robots should not be look at as some "get rich quick" method.

I urge you to trade Forex both manually and use expert advisors. I think this diversified approach is the way to go. And I'll be honest; when I trade manually I DON"T expect to win every day. Some trading sessions just don't go my way... but it's only by jumping in and getting your feet wet that you can truly appreciate the job of a Forex EA. Use a demo account if you are just starting out and treat your demo account as if it was a live account.
Once you realize how difficult it is to just avoid loses, you'll begin to value even the most modest gain. For both manual Forex trading and Auto Forex Trading look for profits over the long haul.

Let's take an example. Let's say I started using an automated robot and expected my account to triple every month (because I didn't have experience trading currency and felt this was a reasonable expectation). The fact is: that's a tall order. So, if the Robot fails to reach that expectation, they believe the EA is worthless.

In the above example, let's say the robot was pulling in a good 11 pips per trading day. And let's say it typically trades only 15 days out of the month (because it doesn't trade on weekends or when market conditions for trading are not optimal). That's 165 pips in a month. That is 1,980 pips a year.
If you're trading a USD denominated 1K lot account that's $1,980.00 additional per year. A 10K lot account would yield ten times as much. A standard 100K lot account with the above returns would give you $165,000.00 a year. Not bad for making just 165 pip's a month. Don't you agree?
All this for doing NOTHING but setting up the EA.

I know a lot of manual Forex traders who would LOVE to be up to the 10 pips per day trading level. While the Forex trader without manual trading experience may feel the success of this Robot is not significant, the experienced Forex trader knows this is an excellent find. Honestly, I personally love seeing an extra 10 - 20 pips added to my account without lifting a finger. Common sense says that a Forex robot that makes consistent profits, however modest, is a really great find!

Article Source: http://depositarticles.com/

David R Jaymes and the team at: www.4x-rox.com make it easy for you to flatten the learning curve and get you on to the Forex trading Profit curve. To claim your copy of their FREE eBook: "Successful Forex Trading Secrets Revealed", head on over to: www.4x-rox.com

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